Panasonic to Cut 5000 Jobs Over Three Years

Panasonic to Cut 5,000 Jobs Over Three Years

The company's job cuts are part of a wider industry overhaul aimed at rescuing Japan's struggling electronics giants, which have also suffered from strategic mistakes that have left their finances in ruins.

TOKYO -- Struggling electronics giant Panasonic (IW 1000/31) said Thursday it was aiming to cut about 5,000 jobs over three years in its automotive and industrial systems unit, following an eye-watering annual loss.

The division, which makes everything from memory chips to car navigation systems, would reduce its existing workforce of about 111,000 people by March 2016, a company spokeswoman said.

The job cuts came less than a month after Panasonic, which has cut about 20% of its total workforce in recent years, booked a 754.25 billion yen (US$7.5 billion) net loss over the year to March.

Panasonic, like key domestic rivals Sony and Sharp, has suffered in its television business where lower-costs foreign rivals proved tough competition, while its debt was inflated by the purchase of smaller rival Sanyo.

Panasonic's job cuts are part of a wider industry overhaul aimed rescuing Japan's struggling electronics giants which have also suffered from strategic mistakes that left their finances in ruins.

The company had a total of 293,742 employees as of March 31, according to the company.

Copyright Agence France-Presse, 2013

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